From the following particulars, prepare
a] A statement of cost of manufacture for the year,
b] A statement of profit as per cost accounts
c] Profit and Loss Accounts in financial books and,
d] Reconciliation of the difference in the profits as shown by b] and c] above,
Opening stock of raw materials: Rs.1, 00, 000
Closing stock of raw materials: Rs.1, 50, 000
Opening stock of finished product: Rs.2, 00, 000
Closing stock of finished product: Rs.50, 000
Purchases of raw materials: Rs.6, 00, 000
Wages: Rs.2, 50, 000
Charge factory overhead at 25% on prime cost. Office overheads will be levied at 75% on factory overheads. Actual works expenditure amounted to Rs.1, 93, 750 and actual office expenses amounted to Rs.1, 52, 500. The selling price was fixed at 25% above cost price.